Virtual StrongBox, Inc.
Wouldn’t it be great to have a steady supply of Godiva chocolates anytime you want? How about Dom Perignon? Even better, season tickets to all your favorite teams’ games? Nice, but hardly necessities.
When banks first offered “convenience” services, like remote deposit and electronic bill payment, they were seen as “nice to have” for customers but not something a bank really had to offer. That’s changed. Retailers and service providers are expected to offer easy-to-use apps that consumers can access on their own tech devices anytime they want. In fact, 90% of the time Americans spend on their smartphones is for apps, according to Yahoo’s Flurry. Flurry saw it coming; three years ago, the analytics firm famously said, “It’s an App World. The Web Just Lives in It.”
Looking at our industry, new research by The Pew Charitable Trusts found that 46% of all U.S. adults have made payments via mobile apps – some 114 million people. In 2011 44% of cells were smartphones; today’s share is nearly double that. And the Fed’s report, Consumers and Mobile Financial Services 2016, revealed that more than half the people who have smartphones used mobile banking in the last year.
Discontent breeds innovation
As with most financial services, mobile banking is no longer a “delighter” – it’s an expected function, almost to the point of commoditization. That’s the normal curve when ideas turn into usable products and services. Thomas Edison said, “Discontent is the first necessity of progress.” He went on to say anyone who is thoroughly satisfied is likely a failure. Strong words. But consider: If we can’t think of anything to change, we won’t try to make life better.
I suspect many bankers are hesitant to upgrade their product offerings, not because they’re happy with the status quo but because of other priorities. New technologies that can bring cutting-edge services to their customers are often met with, “yeah, it would be nice to have, but we’re in the middle of a big